Government VAT plan would encourage consumers to spend

Finance Minister Paschal Donohoe has said that while the package will 'be of sufficient scale' to address the impact of the Covid-19 pandemic in the short run, some firepower will have to be kept in reserve for the National Recovery Plan in October  Photo: Sam Boal/Rollingnews.ie

Reducing your hotel or restaurant bill through a targeted VAT reduction is to be a central part of the government’s July Stimulus Plan on Tuesday.

Government sources have confirmed that opposed to a flat VAT reduction, the plan is aimed at benefitting the consumer and encouraging them to spend, as opposed to acting as a crutch to the hotel sector.